There is clearly a need for improved security in the field of banking especially with respect to consumer accounts. Protection against fraud, misidentification, loss and other problems in consumer finance present a significant financial burden and inconvenience to banks, retailers, and consumers alike.
Consumer check writing practise has not changed to any appreciable extent for over one hundred years, except that the number of persons writing checks continues to grow at an exponential rate. The problem of controlling such a massive funds handling industry is great. The cost of security in the banking industry is part of the total cost that all must pay to assure that the system is viable.
Consumer check books are protected by the mechanisms of providing pre-numbered checks, watermarks printed name, address and phone number, and the magnetically readable codes on the check face. There is currently no protection in the check book for early identification of a missing blank check taken from the checkbook. Of course, early identification is the best defense against fraud. Also, there is no way for a merchant to know if the person signing a check is the authorized person. Should an individual loose their wallet or purse having both their identification and their check book, any other person would be able to use their checks. It seems that the check itself should have a "built-in" mechanism for forgery control since this is lacking in general practise today. Finally, there is no way for a merchant or banker, other then the signature verification card held at the bank, to identify a check bearer. Should a check forger have access to another's personal identification and checks, the forger would have little problem in signing a check for any amount and cashing it at the bank of origin. It would appear that a check should have a "built-in" mechanism for proving the authenticity of the bearer, other than that fact that he holds the drivers license of the authorized person, and that his signature is similar to that of the authorized person.
Clearly, there is a need for an improved check book especially for consumer protection. Such a needed device is described in the following summary and detailed description and is based upon principles that are defined in the appended claims.